Amazon Lawsuit: Third-Party Sales Spark Largest Ever Nationwide Class Case

Case Overview: A federal judge has certified a nationwide class of 288 million shoppers in an antitrust lawsuit alleging Amazon's policies on third-party sellers inflated prices.

Consumers Affected: U.S. consumers who purchased five or more new products from third-party sellers on Amazon since May 26, 2017.

Court: U.S. District Court for the Western District of Washington

Millions of Americans who purchased goods through Amazon’s third-party marketplace may now be covered by one of the largest consumer class actions in U.S. history. 

A federal judge in Seattle has certified a nationwide class of shoppers alleging that Amazon’s policies led to inflated prices on billions of transactions.

The lawsuit, originally filed in 2021, accuses Amazon of violating antitrust laws by imposing restrictions on third-party sellers. According to the complaint, the company prevented sellers from offering lower prices on rival platforms if those same items were available on Amazon. 

Plaintiffs argue this practice not only harmed competition but also forced consumers to pay more than they should have.

Judge Certifies Nationwide Class of 288 Million Shoppers

U.S. District Judge John Chun granted class certification in August, with the decision unsealed in early September. The ruling allows the case to proceed on behalf of nearly 300 million buyers who purchased at least five new products from third-party sellers on Amazon since May 26, 2017.

In his order, Judge Chun rejected Amazon’s claim that the class was unmanageably large. He noted that other courts have certified cases with similarly high membership counts. At this stage, the court found no evidence that the size of the class was overly broad or would prevent the case from being heard collectively.

Plaintiffs Allege Higher Prices Across Billions of Transactions

According to the complaint, Amazon’s policies gave the company power to charge high fees to sellers, which in turn were passed on to consumers through inflated prices. By prohibiting sellers from offering discounts on other sites, the plaintiffs allege Amazon effectively raised the minimum price shoppers paid for goods across the internet.

The lawsuit highlights billions of purchases over several years that may have been affected by these restrictions. Plaintiffs argue the conduct violates federal antitrust law and seeks compensation for consumers who allegedly overpaid.

Amazon Denies Wrongdoing and Plans to Appeal

Amazon has consistently rejected the claims and maintains that its practices benefit both sellers and customers. The company already filed an appeal of Judge Chun’s certification order, which was first issued under seal before becoming public.

In its filings, Amazon argued that the plaintiffs had not shown that its policies caused harm on a wide scale. The company also emphasized that it stopped using one of the pricing programs identified in the lawsuit back in 2019. Amazon contends that certifying such a large class ignores differences among individual shoppers and purchases.

The Case Could Set a Historic Precedent

The class approved in this case includes 288 million individuals, making it one of the largest ever certified in a U.S. court. Lawyers representing the plaintiffs have described the scale of the case as historic, given the sheer number of customers who could potentially qualify for relief.

If the plaintiffs succeed, damages could reach into the billions, given the volume of transactions conducted on Amazon’s marketplace. The ruling sets the stage for further proceedings to determine whether the company’s policies violated antitrust laws and how much compensation may be owed.

Amazon Faces Growing Legal Pressure Over Data Practices

The third-party sales lawsuit is not the only case Amazon faces over its marketplace and digital services. 

Earlier this month, subscribers filed a separate complaint over Prime Video purchases. That case alleges Amazon misled customers by presenting movies and shows as permanent purchases, while licensing agreements allowed the company to remove titles from users’ libraries.

Case Details

• Lawsuit: Elizabeth De Coster et al v. Amazon.com Inc
• Case Number: 2:21-cv-00693-JHC
• Court: U.S. District Court for the Western District of Washington

Plaintiffs' Attorney:

• Steve Berman and Barbara Mahoney (Hagens Berman Sobol Shapiro)
• Zina Bash of Keller Postman; and Steig Olson (Quinn Emanuel Urquhart & Sullivan)

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